ACTS & REGULATIONS
ACT DESCRIPTION ECOA – REG B Equal Credit Opportunity Act Prohibits discrimination based on race/color, religion, national origin, sex, Issued by the Board of Governors of marital status, age, or public assistance the Federal Reserve System HMDA – REG C Home Mortgage Disclosure Act Helps government spot redlining and
predatory lending Implemented by the Federal Reserve Board’s Reg C FCRA – REG V Fair Credit Reporting Act Promotes accuracy and ensures privacy in
consumer reports Enforced by the Federal Trade Commission Regulates disclosures of finance charges, TILA – REG Z shows estimated total costs of borrowing Truth in Lending Act and the expected payment amounts over
life of loan. Ensures creditors will follow Overseen by the Board of Governors same guidelines and use the same format. of the Federal Reserve System Allows consumers to cancel a transaction Provide borrower with info about closing RESPA – REG X costs and eliminate kickbacks and referral Real Estate Settlement Procedures Act fees (section 8). Pertains to 1-4 properties
& includes purchases, assumptions, Overseen by the U.S. Department of refinances property improvement loans, Housing and Urban Development equity lines of credit and reverse mtgs. HOEPA Home Ownership and Equity An amendment to the TILA. A federal law Protection Act concerning high-cost home equity loans
that requires certain disclosures and Enforced by the Commission of the prohibits certain predatory lending FTC and by the states through their practices. Attorney General
DIDMCA Gave the Federal Reserve greater control Depository Institutions Deregulation over non-member banks. Forced all banks and Monetary Control Act to abide by Fed’s rules, allowed banks to merge, removed the power of the Federal Enacted by the Senate and House of Reserve Board of Governor’s under the Representatives of the USA Glass-Steagall Act to set interest rates of DIDMCA (continued) savings accounts, allowed credit unions and S&Ls to offer checkable deposits and allowed institutions to charge any interest rates they choose. AMPTA An act that overrode many state laws that Alternative Mortgage Transaction prevented banks from using mortgages Parity Act other than conventional fixed rate
mortgages Enacted by Congress in 1982 A federal law enacted in 2008 to implement a national system of licensing and registration for all loan originators. Designed to prevent abusive practices during loan origination by:
Requiring all loan originators to be SAFE ACT either state-licensed or federally Secure and Fair Enforcement for registered Mortgage Licensing Act Requiring all states to comply with standard reporting requirements and Enacted by the House and Economic use uniform license application Recovery Act (HERA) forms for state-licensed loan Enforced by state regulators originators Increasing the tracking and reporting of loan originator information across state lines Imposing fiduciary duties on all loan originators Enhancing consumer protection and anti-fraud measures Gives consumers a choice about whether to PRIVACY PROTECTION/DO receive telemarketing calls at home. NOT CALL REGISTRY Registration for home or mobile phones is free. It is illegal form most telemarketers Managed by the FTC and enforced by or sellers to call a number listed on the the FTC, FCC and state law officials national do not call registry.
Amendment to the Fair Credit Reporting FACT ACT or FACTA Act. Allows consumers to request and Fair and Accurate Transaction Act of obtain a free credit report every 12 months 2003 from each credit reporting agency. This
allows consumers to discover and correct Enforced by the FTC errors on their report. RED FLAG RULES
Requires credit reporting agencies to create Enforced by the FTC, the Federal regulation requiring identity theft Bank Regulatory Agencies, and the prevention. National Credit Union Administration (NCUA) This act made it legal for a holding GLB company to have a bank, a securities firm, Gramm-Leach-Bliley Act and an insurance company as subsidiaries.
A holding company is basically a corporate Enforced by the Federal Functional entity created for the purpose of owning Regulators, State Insurance other companies Authorities and the FTC
The Consumer Credit Protection Act is federal legislation that limits wage garnishments and mandates disclosure of certain terms with respect to credit Consumer Credit Protection Act offerings. The Act was passed in 1968 and
is best known for containing the Truth in Enforced by the Board of Governors Lending Act (TILA), which requires of The Federal Reserve System creditors to provide consumers with understandable, comparable terms for credit offers.
Advertising must be truthful and non-deceptive FEDERAL TRUTH IN Advertisers must have evidence to ADVERTISING back up their claims
Advertisements cannot be unfair Enforced by the FTC
TRUTH IN LENDINC ACT FYI: Truth in Lending Act has new rules ADVERTISING RULES regarding advertising, mandatory 10/01/08: Advertising a “fixed” rate when this rate Overseen by the Board of Governors is fixed for a limited time period and not of the Federal Reserve System the loans full term; Using a comparison model demonstrating a hypothetical consumer’s current rate or payment obligations to the advertised product, unless the advertisement states the rates or payments over the life of the loan; Advertisements that characterize the products offered as “government loan programs”, “government-supported or sponsored loans” unless it is a government type loan such as FHA or TRUTH IN LENDING ACT VA or similar loan; ADVERTISING RULES Advertisement such as flyers, (continued) solicitation letters, etc., that display the name of the consumer’s current lender, unless it is prominently disclosed on the advertisement that the mortgage lender is not affiliated with the consumer’s current lender; Advertisements that make claims of debt elimination if the advertised product will only be replacing one debt obligation with another; Advertisements that falsely create the impression that the mortgage broker or lender has a “counselor” relationship with the consumer; Foreign-language advertisements in which certain information such as a low introductory “teaser” rate, is provided in a foreign language, while required disclosures are provided only in English in the same advertisement.
Prohibits discrimination in the sale, rental, and financing of dwellings, and in other housing-related transactions, based on race, FAIR HOUSING ACT color, national origin, religion, sex, familial status (including children under the age of Administered by HUD 18 living with parents or legal custodians, pregnant women, and people securing custody of children under the age of 18), and handicap (disability). FLOOD DISASTER To expand the national flood insurance PROTECTION ACT OF 1973 program by substantially increasing limits of coverage and total amount of insurance Overseen by the Director of the authorized to be outstanding and by Federal Emergency Management requiring known flood-prone communities Agency to participate in the program, and for other purposes.
Protects property owners and the federal government's financial burden from flood losses, by requiring lenders to disclose to the applicant the necessary information FLOOD DISASTER pertaining to the National Flood Insurance PROTECTION ACT OF 1973 Program. (continued)